Tech
Google’s Pixel 7 Pricing Challenge: Carriers Offer iPhones and Galaxy Phones For Free
(CTN News) – There is no doubt that Google’s new Pixel 7 and Pixel 7 Pro will be impressive phones that will have the potential to compete with Apple’s iPhone 14 and Samsung’s Galaxy S22.
Google made a particular point during its Pixel event on Thursday to emphasize that its phones will be cheaper than its rivals’ during its fall product launch.
The Pixel 7 starts at $599 (£599, AU$999), while the Pixel 7 Pro starts at $899.
Compared to the S22, the S22 Ultra costs $1,200. In contrast, Apple prices its iPhone 14 and 14 Pro Max at $799 and $1,099.
For Google, this price difference may not matter to US consumers since most devices are still purchased from wireless carriers.
Pixel fall event
All three major providers offer trade-in and upgrade deals on iPhones, Galaxys, Pixels and other devices to both new and existing customers.
At Verizon, for example, depending on your plan and trade-in device (and your willingness to stay with the carrier for 36 months) you can get an iPhone 14 Pro, iPhone 14, Galaxy S22 or Galaxy S22 Plus for free.
Save up to $1,000 on devices like the iPhone 14 Pro Max, Galaxy S22 Ultra, or Z Fold 4. T-Mobile and AT&T offer similar deals.
Carrier subsidies lock users into 24- to 36-month financing plans, making switching to a rival more difficult. Plus, it’s a good way to get people to switch to pricier monthly unlimited plans.
While all three providers have plenty of deals on the new Pixels, they also offer discounts for Apple and Samsung phones, so the price difference Google highlights isn’t as big.
75% of people in the US upgrading to a new phone used installment plans, according to Roger Entner, an analyst at Recon Analytics.
US consumers fall into two categories: flagship buyers who want all the bells and whistles, and budget buyers who are more concerned with price.
While the Pixels are “a little bit cheaper than the iPhone,” it won’t matter much if you finance them and will only matter if you pay out of pocket.
Still playing a long game at home and abroad
Canalys reported that despite growth of 230% annually in the second quarter of 2022, the company only had a 2% market share in North America.
Bob O’Donnell, president and chief analyst at Technanalysis Research, says aggressive pricing will help Google. It would only be incremental even if they doubled their market share.”
Google could benefit from a lower price overseas, as it is expanding the Pixel’s availability to 16 countries with the new 7 and 7 Pro.
O’Donnell adds, noting that if Google “can start getting traction, that gives them momentum going forward. For them, that’s crucial.
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